Friday, 27 January 2017

CMD with
Hon’ble Union Minister of Steel Shri Chaudhary Birender Singh at Digi Dhan Mela
at Bhilai on 23-01-2017. The sellers and buyers of Chhattisgarh who have done
digital transactions are also felicitated by the Hon’ble Minister.

NLC India Limited, s implementing
a coal based power project (3X660) at Ghatampur, Kanpur Dehat, UP through a
joint venture company called NUPPL with UPRVUNL at an estimated project cost of
RS.17,238crore. The debt component is 70% of the project cost amounting Rs12067
crore.

In order to secure debt
component, the company has adopted an innovative method of tendering including
reverse auction mechanism (A reverse auction mechanism is an auction approach
to procurement/tendering, wherein sellers which meet certain minimum criteria
are eligible to submit non-negotiable price bids.

The buyer (typically a utility)
then selects winning sellers based on the lowest priced bids first, and signs
non-negotiable standard contracts with the winning sellers, incorporating the
prices bid by that seller), with the help of M/S MSTC in which all major
bankers and financial institutions participated and after the successful
tendering method f

Followed, a very competitive rate
of 9.35% was secured for an amount of Rs.4,200 crore. Prior to this method, the
company resorted to traditional way of tendering and could secure an interest
rate of 10.50%.This new method is resulting in a saving to the tune of Rs.460
crore over the tenor of the loan .

The
saving secured is expected to continue in getting the balance loan in due
course of time .This may reduce the project cost significantly which will
reduce the expected level of tariff.

MSTC
Limited conducted this unique e-reverse auction amongst banking and financial
institutions, with L-1 matching for debt component of
this joint
venture company of NLC
India Limited obtaining loan against power project of NLC India
Limited. This
new method is resulting in a saving to the tune of Rs.460 crore over the tenor
of the loan for NLC.

MSTC conducted
e-auction for finalising the lease
rent of 6 plots of Madras Export
Processing Zone (MEPZ) in the first
week of November, 2016. MSTC could elicit very good response and the plots on
offer for lease rent fetched a revenue to the tune of Rs. 759.32 lakhs as
against the notified rental income of Rs. 26.56 lakhs which is an increase of
2858.22%. Lease period is for three years which means increased revenue of
Rs.21.98 crore apprx. (8575% for the lease period) for MPEZ.